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04 Apr 2022
Market update: Cautious crypto optimism
April has started promising for the crypto market, but traders remain wary
The previous seven days have been relatively flat for most large-cap cryptocurrencies with no significant price fluctuations, pushing the volatility down to its lowest levels since the end of January.While BTC is down -2% over the previous seven days, ETH and BNB are up 5% and 4%.On March 31st, the EU Parliament voted in favor of proposals requiring crypto companies to collect KYC information on private crypto wallets before making transactions. The crypto market fell in response but has since recovered.Source: CoinGecko, messari.ioThe best performer of the top 50 coins by market cap is NEAR, with a 37% gain.Waves saw a solid month in March, but the last few days have been tumultuous, to put it mildly, due to USDN - the protocol's native stablecoin - losing its peg.Source: Bletchleyindexes.com, BitfinexThe Large Cap index is the leader in April with a 6% gain, caused by strength in ETH, SOL, and LUNA.
Bitcoin follows behind with a 2% gain, the same as the Small Cap Index.The Mid Cap Index is the worst performer so far in April after one of its members, Waves, has seen a terrible start to the month.Source: Coinmarketcap.comBitcoin’s underperformance relative to the Large Cap Index has led the Bitcoin dominance to decline substantially.Source: Alternative.meThe Fear and Greed Index has stabilized at neutral levels, fluctuating around 50 throughout the week, suggesting a reasonably balanced market sentiment. The index has now trailed around 50 for ten days. The last time this happened, market sentiment plummeted to fearful terrain shortly after. Will the neutral sentiment hold longer this time around?Source: Skew, Tradingview (Binance, Binance US, Bitfinex)The 7-day average real bitcoin trading volume* currently sits at $4.3 billion, after seeing a slight decline from last week as bitcoin has been trading in a narrow range, struggling to break out above 48,000. Spot volumes have been very stable for the previous month, typical in low volatility periods like this.Source: Tradingview (Coinbase)Bitcoin has quieted down, trading in a narrow range between $44,000 and $48,000. The lack of price action has led the 7-day volatility to decline, sitting at 1.6%, its lowest since January 31st. The 30-day volatility is also trending downwards, sitting at early February levels.